Stock market woes continue; ASPI falls to 4-months low

Colombo stock market’s woes continued yesterday as the benchmark index slumped to a four month low amidst lacklustre activity.

The active S&P SL20 Index declined by 1% and the benchmark ASPI by 0.9% or over 108 points. Turnover was Rs. 558.6 million involving 29 million shares.

First Capital said the Colombo bourse experienced a prolonged bearish sentiment as investors opted for a cautious approach with ASPI halting the day in red for the 4th consecutive session and touching a 4-month low to close the day at 11,511, losing over 100 points.

Despite the muted participation of the HNWIs, the increased participation of the retail investors was also observed compared to the previous day. Index heavyweights dragged the market down significantly where COMB, CTHR, JKH, BIL and LOLC emerged as the most significant negative contributors. Notably, COMB experienced a 1.7% price decline following the commencement of trading of rights shares. Turnover recovered from Monday’s significant drop, but was lower by 41.2% from the month’s average. The Capital Goods sector led the turnover with 28%, followed by the Banking and Diversified Financials sectors jointly contributing 30% to the overall turnover. Furthermore, foreign investors turned net sellers, with a net outflow of Rs. 10.6 million.

NDB Securities said high net worth and institutional investor participation was noted in Sampath Bank and Hatton National Bank. Mixed interest was observed in John Keells Holdings, Hayleys and Lanka IOC whilst retail interest was noted in Browns Investments, LOLC Finance and Nation Lanka Finance.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Hayleys) whilst the sector index lost 1.05%. The share price of John Keells Holdings decreased by Rs. 1.75 to Rs. 189.25. The share price of Hayleys lost one rupee to Rs. 100.

The Banking sector was the second highest contributor to the market turnover (due to Sampath Bank and Hatton National Bank) whilst the sector index decreased by 1.10%. The share price of Sampath Bank moved down by 20 cents to Rs. 75.80. The share price of Hatton National Bank recorded a loss of 75 cents to Rs. 188.

Lanka IOC was also included amongst the top turnover contributors though its share price dipped Rs. 1.75 to Rs. 116.25.